INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 19A - Transfers of assets between companies under common ownership  

Subdivision C - Grouped assets  

SECTION 160ZZRDH   POST-COMMON OWNERSHIP GROUPS  

160ZZRDH(1)   Assets that may be in post-common ownership group.  

An asset can be allocated to a post-common ownership group if:

(a) the asset was acquired by the transferor at or after the time at which the transferor and the transferee last came under common ownership; and

(b) the asset was last acquired by the transferor on or after 20 September 1985; and

(c) the asset is the first asset to be allocated to the group or is disposed of to the transferee in the same year of income of the transferor as the year in which the first asset is disposed of; and

(d) the original cost of the asset to the transferor was less than $1 million; and

(e) the asset is not land or a building.

160ZZRDH(2)   How and when section 160ZZRE applies to post-common ownership groups.  

Section 160ZZRE applies to all of the assets in a post-common ownership group in the way specified in subsection (3) if the sum of the consideration for the disposal of the assets in the group is less than the sum of the indexed threshold amount of each asset in the group. The indexed threshold amount of each asset is to be worked out when that asset is disposed of by the transferor.

160ZZRDH(3)   [Grouped assets deemed one asset]  

Section 160ZZRE applies as if all of the grouped assets were one asset that:

(a) was acquired by the transferor on or after 20 September 1985; and

(b) was disposed of at the earliest first asset disposal time for any asset in the group; and

(c) was disposed of for consideration equal to the sum of the consideration for the disposal of each of the assets; and

(d) had an indexed threshold amount equal to the sum of the indexed threshold amount for each of the assets; and

(e) had a reduced threshold amount equal to the sum of the reduced threshold amounts for each of the assets.

In calculating the sums of reduced threshold amounts, or indexed threshold amounts, the reduced threshold amount, or indexed threshold amounts, of each asset at the first asset disposal time for that asset is to be used.